TransDigm Group Inc (NYSE:TDG), an American aerospace and defense company that specializes in the design, production, and supply of highly engineered aircraft components, stock rose 0.77% (As on November 10, 11:36:34 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Organic sales growth as a percentage of net sales was 18.5%. Income from continuing operations for the quarter increased $148 million, or 55.6%, to $414 million from $266 million in the comparable quarter a year ago. Adjusted net income for the quarter increased 47.0% to $460 million, or $8.03 per share, from $313 million, in the comparable quarter a year ago. EBITDA for the quarter increased 29.4% to $911 million from $704 million for the comparable quarter a year ago.

Meanwhile, during the quarter, TransDigm successfully completed a private offering of $1,450 million of 6.875% Senior Secured Notes due December 15, 2030. TransDigm used the net proceeds from the offering, plus cash on hand, to redeem all of its $950 million of outstanding 6.375% Senior Subordinated Notes due 2026 and all of its $500 million of outstanding 6.875% Senior Subordinated Notes due 2026. Subsequent to the quarter, and as previously announced on November 9, 2023, TransDigm has entered into a definitive agreement to acquire the Electron Device Business of Communications & Power Industries (“CPI”), a portfolio company of TJC, L.P., for approximately $1.385 billion in cash. The acquisition is expected to close by the end of TransDigm’s third fiscal quarter of 2024, subject to regulatory approvals in the United States and United Kingdom and customary closing conditions.

TDG in the fourth quarter of FY 23 has reported the adjusted earnings per share of $8.06, beating the analysts’ estimates for the adjusted earnings per share by 7%. The company had reported 23 percent rise in the adjusted revenue to $1.85 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 1%.

For fiscal 2024, Net sales are anticipated to be in the range of $7,480 million to $7,680 million compared with $6,585 million in fiscal 2023, Net income from continuing operations is anticipated to be in the range of $1,641 million to $1,753 million compared with $1,299 million in fiscal 2023, EBITDA is anticipated to be in the range of $3,870 million to $4,010 million compared with $3,395 million in fiscal 2023 and adjusted earnings per share is expected to be in the range of $31.00 to $32.94 per share compared with $25.84 per share in fiscal 2023.